Three southern councils have now all signed off on creating a jointly owned Council Controlled Organisation (CCO) to deliver water services to their communities.

Central Otago, Gore, and Clutha district councils this week each voted to establish the new entity - Southern Water Done Well - and approve a joint Water Services Delivery Plan.

The new organisation will take over all water, wastewater and stormwater services from the three councils, serving a population of 59,000 and managing more than 3,000km of water pipeline, 24 urban water supplies and 10 rural water supplies. 

It is set to begin operating by July 1, 2027.

Modelling by consultants Morrison Low shows the three-council model will collectively save ratepayers $392M through to 2054, even after the withdrawal of Waitaki District Council from the original four-council proposal.

In a statement delivering the news, Southern Water Done Well chair and Central Otago mayor Tamah Alley said the model was “regionally focused, community-driven, and ensures that decisions about water services remain in local hands”.

“We share a common goal to provide the most efficient and affordable water services for our people. Working together in a joint CCO remains the best way for councils to achieve that goal for the people of today and the generations of tomorrow,” she said in the statement.

Under the agreement, each shareholding council will have an equal say through a shareholders’ committee, which will recommend board appointments and set the Statement of Expectations guiding the entity’s operations. 

Local pricing for water services will continue for some time, with a principle that no community will pay more for the same level of service and investment than under their existing in-house model.

Tamah said the structure was designed to be “scalable and flexible”, and the councils would welcome discussions with other councils interested in joining the partnership.

The decisions follow the Central Otago District Council vote on Tuesday (August 12) to endorse 13 recommendations confirming its participation in the CCO. 

At that meeting, CODC chief executive Peter Kelly told councillors any withdrawal from the entity in future would require the involvement of the Department of Internal Affairs, making it a difficult decision to reverse.

Read more: Council locks in three-council water plan

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